Government investment in manufacturing, Stimulus or hindrance to Pakistan's private sector?
Looney, Robert E.
MetadataShow full item record
The cornerstone of the government’s adjustment program is to increase the efficiency of private investment and activity by deregulating the economy and promoting competition. The counterpart of this fundamental strategy is the need to increase the effectiveness of the public sector which in Pakistan had become overextended. To this end, public sector resources and management capacity are being redirected and concentrated in those areas in which public sector intervention is required because of market failures or social objectives. The results obtained strongly suggest that the government’s program is supported by strong empirical evidence. There is no question that private investment has been discouraged by the public capital formation in manufacturing. Not only has government investment in this area stifled the private sector, but also it has diverted funds away from productive activities that would most likely have encouraged a follow-on expansion in private investment.
International Journal of Social Economics, Vol. 26 No. 4, 1999, pp. 521-536, © MCB University Press, 0306-8293
Showing items related by title, author, creator and subject.
Public Sector Deficits and Private Investment: A Test of the Crowding- out Hypothesis in Pakistan's Manufacturing Industry Looney, R.E. (1995);The purpose of the analysis below is to assess whether this public sector crowding out of investment in manufacturing has been a major factor affecting the pattern of private capital formation in that sector. The results ...
Bigham, Joshua D.; Goudreau, Thomas R. (Monterey, California. Naval Postgraduate School, 2004-12);In an environment of scarce resources and rising federal deficits the people not only expect, but demand greater accountability for the spending of public funds. This demand has created a trend in the public sector, not ...
Jones, LR (2012-01-04);In an environment of scarce resources and rising government deficits the public not only expects but demands greater accountability for the spending of public funds. This demand has created a trend in the public sector, not ...